Netflix has officially revised its high-profile acquisition offer for Warner Bros. Discovery (WBD), switching from a stock-and-cash proposal to an all-cash deal valued at $82.7 billion. The amended offer sets the price at $27.75 per share, covering WBD’s studios, HBO, Max, DC, Harry Potter, and Game of Thrones libraries, among other key assets.
This move is seen as a strategic maneuver by Netflix to provide greater certainty to WBD shareholders while fending off a competing bid from Paramount.
Originally, Netflix’s bid included a mix of stock and cash. However, in high-stakes mergers, the uncertainty of stock-based offers can create hesitation among shareholders, especially when competing offers are on the table. By moving to a 100% cash offer, Netflix ensures that WBD shareholders receive a guaranteed payout, strengthening the appeal of their proposal.
“The amended cash offer provides certainty and maximizes value for Warner Bros. Discovery shareholders,” WBD’s board stated.
In comparison, Paramount’s rival bid, reportedly up to $30 per share, has intensified the competition, forcing Netflix to rethink its strategy to retain a competitive edge.
The assets included in the acquisition are a significant addition to Netflix’s content library:
- Warner Bros. Studios: Access to decades of film and television production.
- HBO & Max: Premium streaming content, including iconic series like Succession, Euphoria, and Game of Thrones.
- DC Universe: Superhero franchises including Batman, Superman, and Wonder Woman.
- Harry Potter Franchise: The lucrative Wizarding World of movies and spin-offs.
- Game of Thrones Library: One of the most popular television franchises globally.
Netflix vs Paramount: The Streaming Rivalry
Paramount’s interest in WBD escalated the bidding war. While details of Paramount’s offer vary, reports indicate the company is also pursuing an all-cash deal, intensifying the race to acquire one of the most valuable media libraries in the world.
Netflix’s cash-only strategy reduces uncertainty for WBD shareholders, giving it an advantage over offers that mix stock, which may fluctuate in value depending on market conditions.
If completed, the deal would mark a historic consolidation in the media and streaming sector. Netflix would gain a massive library of films, series, and franchises, dramatically expanding its content offerings and subscriber appeal.
For WBD, the deal provides a cash exit for shareholders, allowing the company to settle its operations with certainty amid growing competition in streaming.
Netflix’s switch to an all-cash $82.7B deal for Warner Bros. Discovery highlights the streaming giant’s commitment to content dominance in an increasingly competitive market. With Paramount also in the race, the coming months are set to define the future of global streaming, possibly giving Netflix unprecedented control over some of the most valuable media franchises in history.